![]() They are really sophisticated and they give us such an edge! I regularly get charts and reports that tell me how the properties are performing.” And with a proud smile, he said “We will be sending you similar reports.” You should look at some of our Excel models. ![]() Relieved to hear the question, the CEO continued, “Sure, we do all that in Excel. “Do you have any data analytics tool for exploring data? Any dashboards for displaying property performance?” The investor was not liking what he was hearing. Our asset managers need to plug in such data into their models and do benchmarking.” “We have subscriptions to third party data services. “I agree with you,” and after taking a breath, asked, “So, other than Excel, what other tools do your asset managers have?” ![]() After all, how can you manage real estate assets without knowing rents, occupancy, expenses, taxes and all the numbers that go with it? We have been doing this for years.” Not sensing any weaknesses in his pitch, the CEO responded reassuringly. But just as important, we want to see a high competency in quantitative methods.” The investor responded, as if on cue, “You know we place a very high value on relationships and community involvement. The CEO could sense that the investor was not impressed. After a pause, he added, “Why do you ask?” In fact, we put them through a training program that includes heavy Excel training.”. I think, collectively, our team is possesses the greatest Excel knowledge in our field. What kind of analytics do they have access to?” The investor had a follow up question ready. These great people will be working for you to find ways to uncover value,” the CEO explained confidently. We do hire some new college graduates from the top schools. Most of our asset managers have been with us five or more years. It has been the key to delivering great valuations and distributions.”Īfter a pause, the investor asked, “So, tell me what it’s like work in your asset management department.” Asset management is a core competency of ours. The CEO responded right away, “I’m glad you asked. I would like to learn about your asset management processes,” the investor added. Is there any other information we can provide you? Just ask,” he said. We are an open book when it comes to our institutional partners. We think our $50 million will be in good hands under your firm’s management,” the investor said. “We are very impressed with what we have learned about your firm during our due diligence process. It was a crisp Autumn morning, and the investor representative had arrived on the first flight in from Chicago. They were seated in the CEO’s giant office overlooking the Detroit skyline. How do you think this meeting went? Real Estate Asset Management With Excel The investor representative is doing due diligence before committing to invest $50 million in a project that the real estate firm is going to develop and manage. Here’s a conversation between an institutional investor and the CEO of a real estate development company. And some asset management teams don’t look beyond Excel to do their work. Excel is such a powerful tool that pretty much anything can be done in Excel. There comes a point when Excel expertise can become a liability.
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